This article was contributed by James Davis with Future Money Trends.
On August 15th, 1971, President Nixon changed the MONETARY LANDSCAPE forever. For the first time in human history, following his televised announcement, the entire global economy shifted from currencies that are BACKED BY GOLD to ones backed by NOTHING BUT AIR!
It was so evident that gold WOULD SOAR that some investors made fortunes so large that they still LIVE OFF THEM today.
In JUST ONE DECADE, gold’s price rose from $35 to $850 per ounce, and that type of return has NEVER MATERIALIZED again in gold. In 2000, gold ended a 20-year bear market and SOARED AGAIN, but not by 2,400% because it couldn’t.
You can’t RECREATE the initial big bang of the universe, metaphorically speaking; it’s physically and mathematically IMPOSSIBLE to start anew.
It’s unfair to those of us who WEREN’T THERE in 1971 to capitalize on this. We never know how much we would have RISKED on gold and would have gained.
In 2009, the price of silver WENT BALLISTIC and climbed from around $9/ounce to eventually reclaim its 1980 all-time high of $49/ounce. A year before, in 2008, though, while the banking sector was in shambles, one of the failing banks supposedly had to sell its silver position, causing the price to go from $21 to $8 in NO TIME.
This was the precursor that birthed the opportunity position in silver as it WENT PARABOLIC.
Silver stocks didn’t just climb by double-digits, and not even by triple-digits. Many of them SHOT UP by QUADRUPLE-DIGITS in three years.
Warren Buffett is FAMOUS FOR hating on gold. He simply doesn’t get it, and while he is one of the best BUSINESS EVALUATORS ever, perhaps the greatest, he is a POOR DIVERSIFIER of funds out of stocks, which is why he has probably MISSED OUT on $100B or more just in the past 20 years alone.
Buffett always keeps plenty of cash around, but instead of SPREADING HIS LIQUID ASSETS between gold and silver, for example, he has kept it mostly in Treasury bonds.
Just since the year 2000, his dollar CASH PILE, money devoted to staying liquid and handy for use during market crashes and buying undervalued stocks, has lost much of its purchasing power while gold has JUMPED from $250/ounce to $1,750 TODAY.
That’s a 700% gain, and it is a TREMENDOUS loss for his shareholders, which could have heard about how the company’s pile of cash is GROWING RAPIDLY at each annual shareholder meeting, instead of getting excuses like that you can’t teach an old dog new tricks.
Buffett simply has not taken the time to UNDERSTAND THE FLAWS of fiat currencies. We can see this because his opinion on Bitcoin is that it is worthless, while the cryptocurrency has led to remarkable returns.
Contrary to his notions, we NOT ONLY take pride in being the FIRST NEWSLETTER to ever cover Bitcoin, to our knowledge, when its price was $13/coin, but we kept on covering it until late in 2017 when at $10,000/coin, we warned that this was a bubble and that PROFITS WERE TO BE TAKEN.
Throughout 2017, Wall Street tycoons blew off Bitcoin, most famously Jamie Dimon, CEO of JPMorgan Chase, who attacked the cryptocurrency.
Buffett has been wrong on it, Wall Street totally missed it from 2013 and onwards, and only in 2020 do we see people like Robert Kiyosaki and billionaire investor Paul Tudor Jones understanding the TRUE POTENTIAL.
The Federal Reserve is PUSHING AHEAD with aggressive ETF purchases and DEBT MONETIZATION on behalf of the Federal Government. June is going to be one of the most CENTRALLY-ASSISTED months in U.S. history. The deficit is getting out of hand and the S&P 500 is kissing 3,000 again.
The point is that in order to HEDGE these expensive bonds and stocks, investors MUST turn to gold.
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The Fed is acting beyond its authority in purchasing this junk and in enacting bail outs. The Fed is supposed to be the lender of last resort, not the purchaser of worthless trash, rewarding high rolling insane gamblers the most.
If bankers do not wish to lend money, they cannot be considered bankers, and are not enitled to Fed funds.
You can’t call yourself a bank if you refuse to lend, refuse to hold assets of depositors, and gamble everything away, and unload toxic gambling debts onto the Fed which passes them onto tax payers.
That is not a bank. That is an organized crime ring engaging in financial fraud.
The Fed is totally unjustified in its actions, as well as Steve Mnuchin at the Treasury.
There is no legal basis for this crime spree!
Governments do back their modern fiat currencies with guns and violence to maintain their monopolies on these mediums of exchange.
The central banks will try to inflate this debt bubble again but at some point more people will wake up and realize that government currencies do not constitute real money. Real money comes from the marketplace. Gold and silver played that role historically but other options exist like platinum and palladium. Technology will allow people to trade in hard assetts more easily and with a decentralized mindset, we can ignore the stupidity of central banks.
It is the interest that causes the inflation, and it has nothing to do with whether it is a fiat currency, or a metal based currency. There was run away inflation even under the gold standard. Interest is the cause of inflation. It was because of the interest, that America had to abandon the gold standard. There is not enough gold on earth to have a gold standard with the size of the population now.
“Gold, Silver, & Lead” was what I was taught growing up. Never thought we would really need the third one, but sadly it appears to be trening that direction.
Mr. Cobb Says,
So true….
“You can’t RECREATE the initial big bang of the universe, metaphorically speaking; it’s physically and mathematically IMPOSSIBLE to start anew.”
That’s not how the seculars say it. .;-)
“in order to HEDGE these expensive bonds and stocks, investors MUST turn to gold.”
Is H.R. 6800 being held up, by a debt Jubilee for the EU, creating a revived Roman Empire. idk.
However, if my strategy was based on SDR’s, I would bet on *whichever commodity is in short supply.
Perhaps, meat, if that is the subject of a popular scare.
In 1993, Clinton allowed foreign banks to open branches in America and become Fed members, which have also been recieving bail outs by US tax payers. In 1992, Goldman Sachs overthrew the Federal government including the Treasury department, and has been engaging in robbery ever since, in addition to acting as a shadow president since 1992.
Pay no attention to the man behind the curtain!
To the best of my understanding, though, you are personally allowed to own such a franchise.
The lemmings are allowed to live within their own means.
So, each of us is that man behind the curtain.
Whether cynically or in good faith, this is the system of govt, which most of us needed and wanted.
It has never worked that much differently, under any system of rule.
As I have researched ancient history, each society and each economy has been like a comparable, parallel universe.
Civilization works under basic rules, such as what we are witnessing, today.
We know what they are, and can use them to our benefit.
Not sure what you mean by the statement that this is the system of government that most of us needed and wanted. Personally speaking, I have never met a person in my entire life of over half a century that has been happy with either the system or the government, including those who are directly working for the government, or who are working for the corporations that have been writing the confessions of high crimes and treason that legislators, the executive and judiciary branches vote to approve.
I have never met a person in my entire life that says, this great. Everything is exactly as God intended it, until I went to AA, which caused me to leave the cult.
Not sure what you mean by the statement that this is the system of government that most of us needed and wanted. Personally speaking, I have never met a person in my entire life of over half a century that has been happy with either the system or the government, including those who are directly working for the government, or who are working for the corporations that have been writing the confessions of high crimes and treason that legislators, the executive and judiciary branches vote to approve.
I have never met a person in my entire life that says, this great. Everything is exactly as God intended it, until I went to AA, which caused me to leave the cult, and lived to tell about in total sobriety.